The Company & The Corporation From the files of the Maytag Company
330 East 11 St. South Newton, Iowa 50208
The positions of leadership occupied today by Maytag Company and its parent, Maytag Corporation, in the highly competitive appliance industry stand in sharp contrast to Maytag's modest beginnings as a small, regional manufacturer of farm equipment.
In the Beginning
F.L. Maytag, who came to Iowa as a farm boy in a covered wagon, joined with three other men to found the company in 1893. The firm produced threshing machine band-cutter and self-feeder attachments invented by one of the founders of the company. Operations were housed in an abandoned, 30 x 40 foot stove works in Newton.
After the turn of the century, the company became involved in several sidelines. The farm equipment line was expanded to include hay presses, hog waterers and numerous specialized feeders and harvesting equipment. Between 1907 and 1911, F.L. Maytag produced 'Maytag-Mason' automobiles in Waterloo, Iowa. As late as 1916, Maytag Company briefly produced farm tractors.
The first Maytag clothes washer was built in 1907 as a sideline to the farm equipment line. It was intended that this product would solve seasonal slumps in the farm equipment business and fill the need for a home washing machine.
The 1907 'Pastime' washer had a wooden tub with a hand crank that turned an inside dolly with pegs, which, in turn, pulled the clothes through the water and against the corrugated tub sides.
About this time in the company's history, F.L. Maytag became sole owner of the firm. Improvements on the first washer came steadily. A pulley mechanism was added so the machine could be operated by an outside power source, and, in 1911, a model with an electric motor was unveiled.
Three years later, Maytag developed its Multi-Motor gasoline engine washer that became a boon to rural homemakers who did not have access to electric power. In 1919 the company succeeded in casting the first aluminum washer tub, producing what was called in the trade 'the washer that couldn't be built,' and eliminating problems inherent in the wooden tub construction.
Expansion into a national company and world leadership came during the first half of the 1920's under L.B.Maytag, a son of the founder, who served as company president between 1920 and 1926. He was a member of the board of directors from 1940 until his death in 1966. He also conceived a new washer design that replaced the dolly under the lid with an agitator in the bottom of the tub.
Howard Snyder, a former mechanic whose inventive genius had led him to head Maytag's development department, worked out details of the new design and came up with one of the most significant inventions in laundry appliance history. His revolutionary washing principle was to force water through the clothes with a vaned agitator mounted on the bottom of the tub, rather than drag clothes through the water with a lid dolly. Maytag first introduced this type of washer in 1922, and it was a great success.
The new washer design put Maytag exclusively into the washer business, prompted discontinuance of farm implement manufacturing, and propelled the company to a dominant position in the young laundry appliance industry.
Trainloads of Maytag 'Gyrafoam' washers went out from the Newton plant in single shipments, and by 1927 the company had produced its first million. It has now produced more than 40 million laundry and kitchen appliances.
Company Goes Public
In 1925, the company went public with listing on the New York Stock Exchange. The company did not, however, turn its back on its rural base. It soon began providing butter churn and meat grinder attachments for its washer and adapted its Multi-Motor for use with a cream separator and, in the 1930's, to function as a light generator. In 1924 an ironer had been introduced as a companion appliance to the Maytag washer.
From 1926 to 1940 the company was headed by E.H. Maytag, another son of the founder. In 1929 the company reached a pre-war high in earnings of $6,838,883, and the firm made its way through the depression years without encountering a loss.
As the shadow of war fell over the country, E.H. Maytag died, and his son, Fred Maytag II, assumed the company presidency in 1940 at age 29.
During World War II, the company discontinued the manufacture of washers and devoted its facilities to the war effort. From 1941 to 1945, Maytag improved and produced numerous special components for military airplanes.
Production of wringer washers was resumed in 1946, and, three years later, Plant 2, a new facility for manufacturing automatic washers, was opened in Newton. Maytag's first automatic washer, the AMP, was introduced in 1949 and began a new era in the history of the company.
With the beginning of the Korean War in 1951, Maytag again served its country, constructing a building next to Plant 1 to produce parts for tanks and other military equipment while continuing its washer production. Production of clothes dryers was added in 1953.
The End of an Era
Thirty years later in late 1983, the end of an era occurred when Maytag discontinued production of wringer washers. The company had produced wringer washers for 76 years, and when manufacturing was discontinued 11.7 million units had rolled off assembly lines in Newton. Industry sales of wringer washers had been decreasing since 1948, and, because of the low volume involved, it was no longer economical for Maytag to manufacture the product.
Plant 2 has been expanded many times since it was built in 1949. The facility and its adjoining product warehouse now cover more than two million square feet on a 175-acre tract. Plant 1, where component parts are manufactured, covers over 29 acres with its numerous buildings and has a floor area of more than a million square feet. The Headquarters building was dedicated in 1961, and the Technical Center was created with the renovation of part of Plant 1 in 1988. Completing the Maytag office complex are Research and Development and the Training Center on the east side of Dependability Square.
Upon his death in 1962, Fred Maytag II was succeeded as chairman of the board and chief executive officer by George M. Umbreit. E.G. Higdon was named president of the company at the same time. This marked the first time in history that the company was not headed by a Maytag. Since then, professional managers have led Maytag Company, and family members have not been involved in management.
In 1972, Daniel J. Krumm succeeded E.G. Higdon as Maytag president and treasurer, and two years later he was named chief executive officer.
Throughout history, Maytag Company has done more of its own manufacturing than perhaps any other appliance maker, due in part to its location, but primarily to its overriding concern for product quality and cost control. Production facilities include machining, sheet metal stamping and welding, rubber and plastics molding and extruding, die casting, heat treating, plating, porcelain enameling and paint finishing.
Field Sales Organization
The company's field sales organization is divided into Eastern, Northern, Central and Western divisions, under which 24 branches with nearly 250 regional managers serve more than 10,000 retail dealers throughout the nation. Canada is served by the Maytag Company Ltd., a subsidiary, and distributors headquartered in Montreal and Truro, Nova Scotia. Overseas, Maytag appliances are sold through Maytag Corporation's international subsidiary, Domicor.
In 1983 Maytag established a national parts distribution operation in Jefferson City, Mo. Today, this facility and the service and parts operations of all Maytag Corporation appliance companies are consolidated under the direction of the Maycor Appliance Parts and Service Company, headquartered in Cleveland, Tenn.
In 1985 Maytag began operations in its second facility in Jefferson City-a 100,000 sq. ft. manufacturing plant. This plant produces wire harnesses, powdered metal parts and other components for Maytag appliances.
Expansion of Product Line
In the late 1950's, Maytag expanded into the growing commercial laundry field. In 1958, the company began manufacturing washers and dryers for commercial self service laundries and commercial route operators.
Over the years, the company has introduced many innovations in the commercial laundry field, including plastic tickets to operate machines rather than coins and the concept of stacking two regular-size dryers. The latter idea provides customers with their own individual laundry areas, and it saves space while conserving energy.
In addition to its single-load laundry equipment and multi-load dryers for the commercial market, Maytag added, in 1987, a line of front-loading washers to its offering of commercial products.
As far as non-laundry appliances are concerned, Maytag began marketing a line of ranges and refrigerators in 1946, both of which were manufactured under the Maytag name by other companies. However, Maytag chose not to stay in this business. Ranges were discontinued in 1955 and refrigerators in 1960.
Six years later the company reentered the kitchen appliance field with a portable dishwasher, and in 1968 it unveiled a line of food waste disposers. These products were manufactured at Maytag Company facilities.
In 1969 the company added a built-in dishwasher and a convertible dishwasher. Two more built-in models were introduced in 1971, and today the company offers a full line.
Growth by Acquisition
In 1981 Maytag launched a program of growth by acquisition and purchased Hardwick Stove Company of Cleveland, Tennessee. Maytag reentered the cooking appliance field in 1982 with a line of gas and electric ranges, wall ovens, built-in cooktops and microwave ovens. During that year, Maytag also acquired Jenn-Air Corp. of Indianapolis, Indiana.
Jenn-Air manufactures electric and gas down-draft grill ranges and cooktops. It pioneered the concept of down-draft cooking ventilation. The company is the leading manufacturer of down-draft cooktops, units that make barbecuing an indoor, year-round activity. In 1987 Jenn-Air began marketing a gas model, downdraft cooktop, as well as a line of refrigeration products.
Late in 1982, Maytag began manufacturing dishwashers for Jenn-Air. These units are built in Newton, Iowa, and marketed by the Indianapolis firm under the Jenn-Air label. Jenn-Air, in turn, makes several cooking appliances for Maytag Company.
Maytag Corporation is Formed
Maytag Corporation, headed by Chairman and CEO Daniel J. Krumm, was formed when the Magic Chef family of companies was merged into Maytag operations on May 30, 1986. In January 1989, Maytag Corporation expanded its worldwide presence by acquiring Chicago Pacific Corporation and its Hoover division.
Today, Maytag Corporation is comprised of three divisions-the appliance group, Hoover group and diversified products group. Altogether, full or nearly full lines of major appliances are marketed in the U.S. under the Admiral, Jenn-Air, Magic Chef and Maytag brands. Other domestic appliance brands include Hardwick and Norge. Hoover floor-care products are distributed internationally, and Hoover home appliances are sold primarily in the United Kingdom, Europe, Canada and Australia. The corporation also manufacturers soft drink vending machines and currency changers under the Dixie-Narco and Ardac brands.
The manufacturing and service companies within the corporation, in addition to Maytag Company, include: Admiral Company; Dixie-Narco Inc.; Domicor, Inc.; Heatube Company; Hoover Company; Jenn-Air Company; Magic Chef Company; Maycor Appliance Parts and Service Company; and Maytag Financial Services Corp.
Today, Maytag Corporation and Maytag Company are headquartered in Newton. The company employs approximately 3,500 people in Newton and Jefferson City, Missouri while the corporation employs approximately 29,000 worldwide.
When Mr. Owens sent us this brief company history, he also enclosed photocopies of service and parts manuals, as well as a listing of serial numbers and their corresponding dates of production. Maytag owners seeking such information may forward questions to Mr. Owens.